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A design studio received a loan of $8,450 at 4.30% compounded semi-annually to purchase a camera. If they settled the loan in 2 years by making quarterly payments, construct the amortization schedule for the loan and answer the following questions: a. What was the payment size? $0.00 Round to the nearest cent b. What was the size of the interest portion on the first payment? $0.00 Round to the nearest cent c.What was the balance of the loan at end of the first year? $0.00 Round to the nearest cent d.What was the size of the interest portion on the last payment? Round to the nearest cent Question 2 of 6 A design studio received a loan of $8,050 at 5.30% compounded semi-annually to purchase a camera. If they settled the loan in 2 years by making quarterly payments, construct the amortization schedule for the loan and answer the following questions: a. What was the payment size? $1.131 22 Round to the nearest cent Solution Read 12.1 Amortization of Loans The correct answer is $1,066.76. Financial Calculator Method Algebraic Method 2nd P/Y 4 Enter 4C/Y 2 Enter 2nd Quit 8 N 5.3 1/Y 5.3 Y 8,050 PV O FV CPT PMT PMT = -1,066.764587... Rounded to the nearest cent, PMT = 1,066.76 Therefore, the size of the periodic payment is $1,066.76. b. What was the size of the interest portion on the first payment? Round to the nearest cent Solution Read 12.1 Amortization of Loans The correct answer is $105.97 Starting Balance Periodic Interest Rate First Interest Rate = 8,050.00 x 0.013 163... $8,050.00 0.013163... = $105.97 Therefore, the first payment had an interest portion of $105.97. c. What was the balance of the loan at end of the first year? 04 229 Round to the nearest cent Solution Read 12.1 Amortization of Loans The correct answer is $4,130.27. 2nd P/Y 4 Enter CY 2 Enter 2nd Quit 8 N 5.3 IY 8,050 PV O FV PT M PMT =-1,066.764587... 2nd AMORT 4 P1 ENTER 4 P2 ENTER BAL 4 P1 ENTER 4 P2 ENTER BAL Answer is: $4,130.27. Therefore, the balance of the loan at end of the first year was $4,130.27. d. What was the size of the interest portion on the last payment? 26.91x) Round to the nearest cent Solution Read 12.1 Amortization of Loans The correct answer is $13.86. 2nd PY 4 Enter CY 2 Enter 2nd Quit 8 N 5.3 1Y 8,050 PV 5.3 IY 8,050 PV O FV P M PMT = -1,066.764587... 2nd AMORT 8 P1 ENTER 8 P2 ENTER BAL The balance is: $1,052.90. Interest Portion 1,052.90 x 0.013163... $13.86 Therefore, the size of the interest portion on the last payment was $13.86